Devon Funds Management

Devon Webinar June 2018 Devon Funds Management Performance (net of fees and tax)

2 Devon Trans-Tasman Fund

Performance to 31 May 2018 1 Month % 3 Months % 6 Months % 1 Year % 3 Years p.a. % 5 Years p.a. %

Devon Trans-Tasman Fund 3.40 4.08 1.57 8.78 7.76 11.35 Trans-Tasman Index (NZ$) Gross 2.15 2.22 3.00 14.71 10.01 10.17 Relative Performance 1.25 1.86 -1.43 -5.94 -2.25 1.18 Devon Australian Fund

Performance to 31 May 2018 1 Month % 3 Months % 6 Months % 1 Year % 3 Years p.a. % 5 Years p.a. %

Devon Australian Fund 3.46 3.05 1.23 11.00 7.22 9.61 ASX200 Index Gross (NZD) 1.76 1.03 0.23 12.71 6.02 6.42 Relative Performance 1.70 2.02 1.01 -1.71 1.20 3.19 Devon Alpha Fund

Performance to 31 May 2018 1 Month % 3 Months % 6 Months % 1 Year % 3 Years p.a. % 5 Years p.a. %

Devon Alpha Fund 4.04 6.03 4.81 12.56 5.98 11.30 Official Cash Rate 0.15 0.44 0.87 1.75 2.11 2.48 Relative Performance 3.89 5.59 3.95 10.81 3.87 8.82 Devon Dividend Yield Fund

Performance to 31 May 2018 1 Month % 3 months % 6 months % 1 Year % 3 Years p.a. % 5 Years p.a. %

Devon Dividend Yield Fund 2.59 4.86 -0.09 1.24 7.06 11.41 50:50 NZX50 & ASX200 Index Gross in local CCY 1.82 2.24 4.29 13.17 9.97 6.96 Relative Performance 0.77 2.62 -4.38 -11.93 -2.90 4.44 Devon Diversified Income Fund Performance to 31 May 2018 1 Month % 3 months % 6 months % 1 Year % Devon Diversified Income Fund 0.92 1.50 0.98 3.84 OCR +1.5% 0.27 0.82 1.62 3.27 Relative Performance 0.65 0.69 -0.64 0.57 Devon Funds Management NZ economy – growth remains solid but key drivers fading

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Source: UBS Devon Funds Management Australian economy – solid Q1 GDP growth of 1% and 3.1% y/y

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Source: UBS Devon Funds Management Household debt remains the risk

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Australian banks = 65% residential mortgages Australian economy (private sector) has re-leveraged to all-time record levels

Source: UBS Devon Funds Management Market performance has been affected by MSCI index changes

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Largest changes were the addition of A2 Milk and deletion of Mercury, but re-weighting has also driven volume. Source: Forsyth Barr

Stock Price 30/4 Price 5/6 Return Fisher & Paykel Healthcare $12.75 $13.91 9.10% Spark $3.46 $3.66 5.64% $6.38 $6.67 4.47% $6.31 $6.58 4.28% $10.60 $11.70 10.38% $2.94 $3.15 7.14% $3.19 $3.29 3.13% A2 Milk $12.15 $11.00 -9.47% Devon Alpha Portfolio Current portfolio positioning 7

Top Holdings Asset allocation

Company % Vista Group 8.0 BHP 5.0 5.0 5.0 Brambles 5.0 5.0 5.0 GTN 5.0 Aristocrat 4.5

Scottish Pacific 4.0 NZ AU Cash Super Retail 4.0 Fletcher Building 4.0 Improved quality, earnings have grown, but multiple has remained steady

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Earnings more diversified P/E has generally gone sideways

Source: Factset, company data Atlas Arteria Great assets, sharply rising dividend 9

Essential infrastructure for trans-European freight and private traffic…

…corporate structure finally emerging from the shadow of the GFC sees cash flow to shareholders.

Dec/18F Dec/19F Dec/20F Dec/21F Proportionate revenue 1,157.5 1,195.4 1,239.6 1,280.2 Proportionate revenue Growth 32% 3% 4% 3% Proportionate EBITDA 864.1 899.0 937.5 973.2 Proportionate EBITDA Growth 32% 4% 4% 4% MQA Distribution per share $ 0.228 $ 0.427 $ 0.764 $ 0.586 DPS Growth 14% 87% 79% -23% P/E 0.0x 0.0x 0.0x 0.0x Net yield 3.9% 7.2% 12.9% 9.9% Imputation 100% 100% 100% 100% Gross yield 5.4% 10.0% 17.9% 13.7% Source: Company data, Devon Devon Trans-Tasman Portfolio Current portfolio positioning 10

Company Name Country % Fund BHP AU 6.0% Asset allocation NZ 5.0% Vista Group NZ 5.0% Suncorp AU 4.0% Westpac AU 4.0% NAB AU 4.0% Spark NZ 4.0% Fletcher Building NZ 4.0% CSL AU 3.75% Meridian NZ 3.75% Fisher & Paykel NZ 3.0% Brambles AU 3.0% GTN AU 3.0% Wesfarmers AU 3.0% AU 2.5% NZ AU Cash Janus Henderson AU 2.5% Macquarie Atlas AU 2.5% Trade Me NZ 2.5% Devon Australian Portfolio Current portfolio positioning 11

Top Holdings Asset allocation Company Name Country % Fund BHP AU 8.5% Westpac AU 6.5% CSL AU 6.0% Vista Group NZ/AU 5.5% Suncorp AU 5.0% Wesfarmers AU 4.5% GTN AU 4.0% ANZ AU 3.5% Brambles AU 3.5% Macquarie Atlas AU 3.5% AU 3.0% AU 3.0% AU Dual listed Cash Janus Henderson AU 3.0% PWR Holdings AU 2.5% Oz Minerals AU 2.5% National Tyre & Wheel AU 2.0% Aristocrat Leisure AU 2.0% Vista Revenue growth of 20% + for the foreseeable future 12 Global cinema screens Vista in a sweet spot, still not reflected in market value

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3.5

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2.5

2

1.5

1

0.5 8-Jun-15 8-Jun-16 8-Jun-17 8-Jun-18 8-Oct-14 8-Oct-15 8-Oct-16 8-Oct-17 8-Apr-15 8-Apr-16 8-Apr-17 8-Apr-18 8-Feb-15 8-Feb-16 8-Feb-17 8-Feb-18 8-Dec-14 8-Dec-15 8-Dec-16 8-Dec-17 8-Aug-15 8-Aug-17 8-Aug-14 8-Aug-16

AUSTRALASIAN GROWTH FY'3 Cons. Enterprise FY19 Cons. FY19 Cons. Cons. YTD Revenue Value EV/Sales EV/EBITDA G Margin Perf. Growth % $m (%) (%) TOUCH G 57% 1,877 9.1 x 31.6 x 77% 43% PUSHPAY HOLDINGS 56% 1,145 7.7 x 646.8 x 57% 2% EROAD LTD 30% 243 3.5 x 9.7 x n/a -2% WISETECH GLOBAL 28% 4,465 15.7 x 42.4 x 83% 8% VISTA GROUP INTE 20% 576 4.0 x 14.9 x n/a 23% LTD 20% 2,878 17.3 x 49.8 x n/a 69% CLASS LTD 18% 265 6.4 x 13.3 x n/a -13% FREELANCER LTD 13% 171 3.1 x 142.8 x 88% -8% APPEN LTD 16% 1,210 3.6 x 18.6 x 40% 32% GENTRACK GROUP L 14% 645 5.5 x 16.4 x n/a 8% TECHNOLOGY ONE 12% 1,273 3.8 x 15.9 x n/a -13% REA GROUP LTD 13% 11,719 12.6 x 21.4 x n/a 15% SEEK LTD 12% 7,332 5.1 x 15.2 x n/a 6% .COM LTD 12% 3,710 7.3 x 15.3 x 91% 1% 3P LEARNING LTD 9% 185 3.0 x 9.1 x n/a -13% TRADE ME GROUP L 6% 2,025 7.5 x 11.6 x 93% 1% Source: MYOB GROUP LTD 9% 2,086 4.2 x 10.3 x 96% -21% company data MEDIAN 15% 1,241 5.4 x 15.6 x 88% 4% CSL Growth in plasma collection centres & new products driving upgrade cycle 13

Collection center growth Strong EPS guidance for FY18

35%

30%

25%

20%

15%

10%

5%

0% August Feb-18 May-18

Source: company data, Devon Market Conditions Current opportunities and outlook

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. Markets are still expensive despite recent volatility

. Recent market performance has been narrow and momentum driven

. Global environment appears positive although local economic cycle is extended

. Rising interest rates remains the strong consensus view – if true, likely to give rise to more

volatility in equity markets

. We believe careful stock selection based on fundamental analysis and appropriate risk

awareness will be critical to success in coming months 15

This document is not a Product Disclosure Statement (PDS) under law or under any other law. It is for information purposes only and contains summarised information. Accordingly, this document neither purports to be exhaustive nor contains all of the information which a prospective investor or the recipient may require to make an investment decision. This document does not contain all of the information which would otherwise be required by New Zealand law or any other law to be disclosed in a PDS or similar disclosure document required under foreign law. Prospective investors should inform themselves as to any applicable legal requirements and taxation and exchange control regulations in the countries of their citizenship, residence or domicile which might be relevant. A PDS for the fund/s mentioned in this presentation is available free from Devon Funds Management Limited. Investors should read and understand the PDS for the relevant fund(s) in which they invest and satisfy themselves they understand all the terms and conditions of investment in the fund/s. The information in this document is not intended to be advice. In preparing this document, Devon Funds Management Limited did not take into account the investment objectives, financial situation and particular needs of any particular person. Devon Funds Management Limited recommends that potential investors consult their financial adviser and obtain professional financial advice on their individual requirements before making any investment decisions. Past performance is not indicative of future results. Investments in any of the Devon Funds are subject to investment risk, including possible delays in repayment and loss of income and capital invested. Neither Devon nor any related company of Devon, guarantees any particular rate of return on, or the performance of, the Devon Funds, nor do they guarantee the repayment of capital from the Devon Funds.